JUANILLO, Dominican Republic -- Cap Cana, S.A. ("Cap Cana" or "the Company") announced today that it will not be able to make the interest payment originally due on October 31, 2011 to the holders of the10% Senior Secured Notes due 2016 (the "2016 Notes"). The amount of interest due is approximately $4.8 million. The Company further announced that, based on its currently projected cash flows, it will not be able to resume interest payments on the 2016 Notes for the foreseeable future.

As of October 31, 2011, the outstanding balance under the Indenture governing the 2016 Senior Notes was $96,030,500 and the outstanding balance under the Indenture governing the 2016 Recovery Notes was $119,080,662 including both principal and accrued unpaid interest.

Under the Indenture of the 2016 Notes, the failure to pay interest constitutes an Event of Default. The Event of Default triggers cross-default provisions in the Company's 10% Senior Secured Recovery Notes due 2016 (the "2016 Recovery Notes").

The Company will host an investor conference call to discuss the events of default, the economic and market events leading to the Company's current financial situation, the efforts undertaken to date to reduce costs and improve its financial condition and the uncertain economic and market outlook.

The Company shall also present possible resolution strategies.

The call will begin at 9 a.m. Eastern Time on Friday, November 18, 2011. Interested parties can listen to the live conference call by dialing 1-(888) 566-7603, access code 8839262. International callers can participate by dialing 1-(630) 395-0351, access code 8839262. A replay of the call will be available at 1-(866) 407-9273, access code 1914 until November 25.

Cap Cana is a 30,000 acre master-planned luxury resort and real estate community located on the eastern tip of the Dominican Republic in the Caribbean. The community is fully operational with championship golf and yachting facilities, a world class hotel, pristine beaches, a variety of dining and retail establishments and numerous other amenities. Since breaking ground in 2002, Cap Cana has invested approximately $800 million in infrastructure and other improvements and has entered into contracts with aggregate value of approximately $1.5 billion for the sale of approximately 1,500 units of real estate properties. Cap Cana says that it has delivered 700 real estate properties to buyers, including retail and developer hotel lots, condominiums and villas.

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